💰 Financial Performance

Revenue Growth by Segment

The Company operates in a single segment: 'Power Products', which saw a revenue growth of 2.85% YoY to INR 33,052 lakhs for H1 FY26 compared to INR 32,137 lakhs in H1 FY25.

Geographic Revenue Split

Not disclosed in percentage; however, the company is a net foreign exchange earner with INR 16,095 lakhs in export earnings (approx. 48% of H1 revenue) and has a strong domestic presence in Eastern, Central, and Southern India.

Profitability Margins

Net Profit Margin for FY25 was 10.06%, up from 9.32% in FY24. However, PBT for H1 FY26 declined 16.36% YoY to INR 2,786 lakhs due to a 21.65% increase in raw material costs.

EBITDA Margin

Estimated at 6.3% for H1 FY26, reflecting core profitability after adjusting for INR 1,837 lakhs in interest income and INR 1,124 lakhs in depreciation.

Capital Expenditure

Historical capex for H1 FY26 included INR 2,218 lakhs in PPE payments; Capital Work-in-Progress increased 192% to INR 1,865 lakhs for future capacity/upgrades.

Credit Rating & Borrowing

Not disclosed in available documents; finance costs are minimal at INR 7 lakhs, suggesting low leverage.

⚙️ Operational Drivers

Raw Materials

Engine components, casting materials, and E10/E20 gasoline-compliant parts; cost of materials consumed represents 60.3% of total revenue.

Import Sources

Japan (via Honda Motor Co. Ltd. technical expertise) and domestic Indian suppliers.

Capacity Expansion

CWIP increased by 192% to INR 1,865 lakhs as of September 2025, focused on upgrading manufacturing facilities for E20 gasoline compliance and new engine models like the GX200.

Raw Material Costs

INR 19,926 lakhs in H1 FY26, a 21.65% increase YoY, squeezing PBT margins from 10.3% to 8.4%.

Manufacturing Efficiency

Introduction of the GX200 engine with rpm reduction for higher torque and process efficiency improvements via global Honda standards.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Expansion of the water pump portfolio with the new 4-inch model, rollout of E20 gasoline-compliant gensets to meet new regulations, and increasing penetration in the construction segment through portable machinery.

Products & Services

Water pumps (1.5 to 4-inch), Brush cutters, Engines (GX200), and Portable Generators.

Brand Portfolio

Honda.

New Products/Services

4-inch outlet water pump (launched Aug 2024), GX200 high-torque engine, and E10/E20 gasoline-compliant gensets.

Market Expansion

Targeting construction segment mechanization and multi-channel structures with specialized OEM partners.

Market Share & Ranking

Market leader in the water pump segment, specifically the 2-inch category with 60k+ units sold.

Strategic Alliances

Technical collaboration and on-the-job training with Honda Motor Co. Ltd., Japan.

🌍 External Factors

Industry Trends

Shift towards electrification and E20 gasoline; 2-inch water pump segment growing with 60k+ unit milestone; construction mechanization increasing.

Competitive Landscape

Competing with diesel water pump manufacturers; successfully converting users to 4-stroke petrol/kerosene models.

Competitive Moat

Strong brand equity of 'Honda', access to superior Japanese technology, and a dominant 60k+ unit volume in the 2-inch pump segment.

Macro Economic Sensitivity

Sensitive to government agricultural spending and infrastructure growth; PBT fell 10% in FY25 partly due to slow fund releases.

Consumer Behavior

Farmers shifting from bulky diesel pumps to portable 4-inch outlet water pumps for better usability.

Geopolitical Risks

Export compliance with USA regulations (EPA/CARB) makes the company sensitive to US trade and environmental policy changes.

⚖️ Regulatory & Governance

Industry Regulations

Transition to E20 gasoline norms and compliance with international EPA/CARB/CPSC/ANSI standards for exports.

Environmental Compliance

Investment in E20 gasoline technology and 300 kw solar plant; compliance with G300 regulations for USA.

Taxation Policy Impact

Effective tax rate based on H1 FY26: INR 1,272 lakhs paid on PBT of INR 2,786 lakhs (approx 45% including interest/refunds).

Legal Contingencies

Notice issued by authority with no material financial impact; no major pending litigation mentioned.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material costs (up 21.65% YoY) and delays in government agricultural subsidies (impacts demand).

Geographic Concentration Risk

Strong presence in Eastern, Central, and Southern India; significant export exposure to the USA.

Third Party Dependencies

High dependency on Honda Motor Co. Ltd., Japan for technology absorption and manufacturing quality standards.

Technology Obsolescence Risk

Risk of transition to full electrification; company is mitigating by integrating electrification technologies into power units.

Credit & Counterparty Risk

Trade receivables reduced by 47% to INR 6,232 lakhs, indicating high-quality receivables and efficient collection.